Being an investor is a challenging endeavor, but it is one that harbors great rewards. Nonetheless, there is a lot of anxiety involved and this can cause a person to become rather anxious. This anxiety can then lead to a bit of unhappiness, although investing is something that the investor can’t stop doing just because they are not happy.
If you are one of these unhappy investors, you will be relieved to know that you can be happy. It is the contented investor who doesn’t care what other people think and who can use their brain to make good investment decisions. It all comes down to having a plan of where you want to go with your investments and how you are going to get there. Just be realistic and change your mindset so that you can be well on your way to throwing the fear out the window and replacing it with a smile.
Ignore What Others Think
The first thing you need to do to change your mindset is to totally forget what others think. It isn’t their money going into your investments, so they shouldn’t say a word to you about anything. Yes, it is difficult to ignore others when they make themselves loud and clear, but you are the smart investor, which means you are going to focus on internal gratification rather than seeking it from other people. Other people are not going to coddle you if you do make a mistake and they are not always going to give you a pat on the back when you succeed. It all comes down to you and how you feel. You are what matters. Just make sure your ego doesn’t get in your way or you may find the mistakes become more plentiful than if you just keep a level head about yourself.
Address Your Needs
Another way to become more content is to be up front about your wants and needs. This goes back to the part where you don’t worry about what others think. If your goal is one in which you please others, you will never be happy. Don’t worry about their needs; worry about your own needs. Worrying about the needs of others or even concerning yourself with offending them is not going to lead to a successful investment portfolio. All you are doing when you preoccupy yourself with the desires of others is placing a barrier between you and investor happiness.
You also need to be honest. You will find that honesty goes a long way when you are an investor. Hold on to your principles because letting your principles slip may cause you to have regrets and having regrets is not good for investor contentment. Draw a line in a safe place and define yourself and you will be respected for that. Overall, honesty simply takes less effort than dishonesty. This is honesty with yourself, your broker, your family, and your community. You will find that honesty makes more money than dishonesty. In other words, you are simply realistic and you set realistic goals based on a true assessment of your knowledge and skills.
Don’t Regret Your Purchase
It is your knowledge and skills that will help you make buying decisions when investing your cash. However, there are times in which investors regret a purchase because the trade went bad. Sitting around and sulking over it is not going to change the end result, but there are lessons in these mistakes and we need to use those lessons to ensure the exact same mistakes never happen again. If mistakes repeat themselves, it is simply time to re-evaluate and try again. Investing is a game of chance and that is something that every investor must realize before they invest that first dollar.
Learn From The Past
You are going to be your best advocate. If you had parents that didn’t know how to manage money, chances are you developed your money management skills on your own. Your psychological state when it comes to cash is most likely intertwined with how well you profit, so you have to release yourself from a past that involves some kind of negative money management. Make sure you take errors in the past and use them to instill confidence in yourself. You have probably learned things that many people don’t and you can use this knowledge to your advantage.
But while you are instilling confidence in yourself, it is important to not become too confident. If you are not knowledgeable in a particular area, there is nothing wrong with hiring a financial advisor to help you. The only issue with the paid advisors is that you may find they are hard to trust. Use what you have learned in the past and always question the advice that you are given just like you would question your doctor. Asking questions, learning from the past, and making sure you educate yourself in every way is how you are going to remain close to your money.
Tell Fear Goodbye
Lastly, making investing decisions based on the presence or absence of fear is going to lead to investment failure. While it can be difficult to avoid, allowing emotion to make investment decisions can block you from maximum profits. If you are going to hand money over with a shaky hand, the market will hand back what you give to it.
Fortunately, doing some research can help you take the fear out of investing. For instance, look for new businesses with CEOs that have started successful businesses before. Study sales trends to ensure they are favorable and make sure the stock isn’t overvalued so that it doesn’t take a steep dive later. You can then ask yourself whether or not there is anything to be afraid of about that investment. If you come up with very little, you could be looking at a fantastic investment. Weighing the pros and cons enable you to use your brain rather than just your emotion when making the decision.
You will find that when you use your mind rather than your heart when dealing with your money, you will be less fearful. This reduction in fear leads to less anxiety and that means making fewer mistakes so that you can grow your profits. You may even get a little bit of a rush from the change and this will make you an even happier investor.